Forrest ‘squeezed out’ as Canberra talks progress

Mining magnate
Andrew Forrest
was yesterday 3080 kilometres away from Canberra, where the federal government was negotiating the resource tax with his rivals.

The decision by the government to engage
BHP Billiton
,
Rio Tinto
and Xstrata instead of the broader industry has raised the ire of several miners and representative bodies promised an audience with Prime Minister
Julia Gillard
.

Tensions are rising among those perceived to be frozen out of the talks. Mr Forrest, who was in Perth yesterday, this week called on the government to continue work on a consultation paper set to be released by
Kevin Rudd
before he was ousted as prime minister last week.

Industry bodies, including the Association of Mining and Exploration Companies (AMEC), are yet to hear back from the government after being promised a seat at the negotiating table late last week.

AMEC chief executive
Simon Bennison
, who represents small-to-mid-size companies, said yesterday that parts of the industry were at risk of being isolated.

“I think it’s very unfortunate the government is taking this approach and we in the industry need to stand firm and make sure they don’t divide and conquer," Mr Bennison said. “We’ve become the pawn in a political game for them."

Several prominent mining names in Western Australia who agreed to suspend anti-super profits tax advertisements at the request of Ms Gillard may be poised to restart the campaign. Mining sources said that Mr Forrest appeared to be “squeezed out" by Ms Gillard’s approach. “You would think Twiggy [Mr Forrest] would have to be dragged into the tent at some stage," one source said. The
Fortescue Metals Group
founder is one of the highest-profile opponents of the tax.

There is widespread concern among miners that any deal reached by those negotiating with Ms Gillard – BHP, Rio and Xstrata – might not represent the broader interests of the sector. Emerging miners would be less concerned than the mining giants of convincing Ms Gillard to only impose the tax on future projects, rather than existing ones as well.

Mr Forrest said on Tuesday that he could not see a quick resolution with the government, as it appeared negotiations were back at “square one".

“We had reached a set of points which I thought the [then] prime minister was happy with, which the mining industry would be prepared to discuss, and that was all taken off the table before it could be announced," Mr Forrest said. “It was a shame really that it got cut off so violently."